PPP - reduced deductions for fiscal year taxpayer - Spidell

PPP – reduced deductions for fiscal year taxpayer

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Message Board PPP – reduced deductions for fiscal year taxpayer

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      Jeanette Anderson
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      If a fiscal year corporation obtained PPP loan proceeds three weeks before the fiscal year end and is using the 24 week expense period.  All of the loan proceeds were used for payroll during the 24 week period and so it is reasonably expected that the entire loan will be forgiven.  My question is whether the payroll expenses are reduced over the two fiscal years as the PPP loan proceeds were used to cover payroll?  Or is payroll expense deduction reduced in the year the loan proceeds were rec’d (when only 3 of the 24 week period had passed and so not all loan proceeds yet disbursed via payroll)?

      Thanks!

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